Relocate for Compensation: US Towns and Cities Offering Financial Incentives for Residence Change
Small towns and cities across the United States are implementing innovative strategies to combat population decline and boost local economies. One such approach is offering financial incentives to attract remote workers to move and work in these areas.
These incentives, which range from cash payments and relocation grants to perks like concert tickets and golf memberships, aim to reverse population decline, stimulate local economies, expand tax bases, and improve community vitality. The rise of stable remote work (approximately 10% of the U.S. workforce) has opened up opportunities for smaller and mid-sized cities to attract residents without the need for large employers to relocate.
To be eligible for these programs, applicants must typically be fully remote workers or run location-independent businesses. Some programs require proof of employment or independent income, while others may have additional conditions such as minimum income thresholds or a commitment to live in the community for at least one year. Application approval and a selection process are also common requirements to participate in these programs. Some programs may even require job offers locally or incentives for partners who secure employment.
However, these programs come with potential drawbacks. Limited availability and competition for spots can be a concern, as many programs have caps on the number of new residents they can support. There is also a risk that newcomers may not integrate, leading to lower retention rates if community or economic conditions are not supportive over time. Financial incentives could also encourage short-term moves rather than long-term commitments. Additionally, environmental impact depends on local development decisions, as growth can strain local infrastructure or ecology if not managed sustainably. The programs may also favour individuals who can work remotely and may not address broader economic challenges affecting non-remote workers in the area.
Despite these challenges, these relocation incentives serve as a targeted economic development tool to attract talent and stabilize or grow shrinking populations. Success depends on thoughtful community integration and sustainable planning.
For instance, the state of Alaska does not have a specific relocation program, but it does have the Permanent Fund Dividend, a multi-billion-dollar state-owned fund that offers a share to every resident who has lived in the state for the entirety of the previous calendar year. In 2024, this totalled $1,702. Several cities and regions in Indiana offer relocation incentives, with the most prominent being Choose Southern Indiana, which offers a $5,000 cash incentive. West Virginia offers the Ascend WV program, which includes a $12,000 relocation grant that can be spent on anything, along with 12 months of free access to outdoor activities like whitewater rafting, skiing, and paddleboarding.
The city of Frankfort, Kentucky offers $5,000 in cash, free access to local attractions, and networking events with local dignitaries and business leaders. Tulsa, Oklahoma, has a program called Tulsa Remote that offers a cash grant of $10,000 and additional support to remote workers who relocate to the city. The Choose Topeka program offers a $15,000 cash incentive, with the employer match focusing on housing costs. If renting, it's up to $10,000; for home buyers, it increases to the full $15,000.
The plan is to benefit from the economic uptick that the presence of these professionals brings, both in terms of tax revenues and the real estate market. The trend of offering relocation incentives is driven by urbanization, specifically the flow of people from smaller towns and cities to larger regional hubs. Smaller towns and cities are now fighting back by offering financial incentives to attract educated professionals in high-growth industries like tech.
Some towns and cities also offer financial incentives for movers, including cash and other perks. Choose Southern Indiana has a Graduate Retention Program, which provides recent graduates from within Indiana with $5,000 to stay put, rather than head elsewhere looking for work. The Ascend WV program also provides access to coworking spaces at no additional charge and includes social programs to help with making friends. The Choose Topeka program has a Boomerang offer of $5,000, no-strings-attached, or the same amount for veterans transitioning to civilian life after completing their military career.
In conclusion, these relocation incentives serve as a targeted economic development tool to attract talent and stabilize or grow shrinking populations. However, success depends on thoughtful community integration and sustainable planning.
- To further boost local economies, some small towns and cities are also focusing on lifestyle aspects such as fashion-and-beauty, food-and-drink, home-and-garden, and travel, by developing unique experiences for remote workers and residents.
- In an effort to attract remote workers, the city of Tulsa, Oklahoma, not only offers a cash grant but also provides additional support like access to coworking spaces and social programs that cater to the fashion-and-beauty, food-and-drink, and travel interests of its residents.
- To incentivize long-term commitments from newcomers, some programs may even offer benefits extending beyond financial assistance, such as free access to local attractions, which cater to a broad range of interests including home-and-garden, travel, and entertainment like casino-and-gambling.
